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.... Can the OP supply the MLS number or property address, that would allow us to investigate further? .... I don't know that the listing will provide the keys to the problem, but it can only help to have more eyes on the property right now.

Your point about other lenders being able to see this lender's notes, etc., is a scary thought. The appraisal, yes, we know it will be seen by other lenders.

Property address is 13925 E Bradshaw, Dewey, AZ. However the photos that accompanied the listing are not good ones. Is it possible for me to link to photos that are on a site like Photobucket?

If you look up on the left hand side, click on "my settings." From there, you can start a photo album and upload photos. Then you can either link us to the photos or copy and paste them into the body of the thread.

Do you have a link to the listing? Or can you upload a copy here. (Go Advanced, manage copies) Zillow is the only one that I can find any info, and it's very limited. Anyway, I'll be happy to look for clues in the morning (I'm on east coast time) and bed is beckoning. But just being unique doesn't sound like a deal killer, unless there aren't comps. I just want to make sure nothing is being missed.

Uhm, what is the status of your lock? When does it expire? Do you have the lock in writing?

I must confess that I have not read all the posts made in this thread. I just got home, am tired and want to go to bed.

All I can add is that I appraise plenty of rural and unusual/unique properties for FHA financing and have not had any issues unless there were a lot of repairs.

ETA: Smartmoney, there are always sales that can be used as comparables. The appraiser can go to a competing market or, in some cases depending on the type of man home, can use stick built houses as comparable sales. The key is to explain the daylights out of it.

You'll note that the realtor worded "1500 SF SITE BUILT ADDITION. 3 CAR GARAGE IS PART OF THE ADDITION." She realizes now that her wording is off, because the garage and addition (workshop, studio, game room, whatever) are separate from the house, on their own foundation, and NOT attached in any way to the manufactured home.

And I've added more photos on Album in my profile -- mouse over each photo to see what it is of. You'll notice that the framing of the workshop/studio is right up next to the manufactured home, but it is in fact NOT attached. The owners consulted with county and got plans approved and knew to do nothing load-bearing on the manufactured home. One could do about anything with that large workshop area, to me it smacks of art studio which I desperately need. Good lighting, easy back and forth from house, heat and A/C to protect art works, etc.

On the photo of the front of the house where one sees the smallish front deck, deck also is not attached to the manufactured home. The overgrown arbor to the right in that photo has been totally taken down.

Owner and children were in process of moving out when photos were taken.

Of course you can always compare a frog to a dog, but it doesn't mean they can be compared reasonably.

OP, is the listing agent aware of the underwriter's ruling on the unique property? When does your lock expire?

Just a quick glance, I suspect the problem lies in the antique gas station, pool, playhouse and heated garage, not the home itself. Again, this is a quick glance and nothing more than a hunch with the information available. Have they sent you the full appraisal? Your best bet at this point is to have another lender review the appraisal (the appraisal stays with that home unless another underwriter declares it invalid - rare, and again, noted in the FHA Connection). See if the next lender will agree with the first lender. Be up front about what's going on - they'll likely see the notes sooner or later. Even if the notes are not there now, the first lender certainly would go in and input their notes when the case number was assigned to the second lender. So, what I am saying is if you get an opinion now and then a week later the underwriter reads notes that were not shared, what you were initially told could fall thru because the underwriter did not have all the facts. This system is in place to prevent the 2nd lender from "putting something past" HUD.

We do have the full appraisal. There is nothing said on it about the antique gas station, playhouse or other sheds on the property. The pool needed to be drained and covered, which we had done and that was okayed on the appraiser's followup compliance report.

There are some INCORRECT things on the appraiser's report, as follows:

1. Appraiser stated (putting this in exact context): "The subject property ... appears to be in overall average condition having been well maintained including laminate/vinyl flooring ... 2004 (Addition), site built with 3-garage (unfinished) undetached from manufactured home."

This is incorrect -- the garage has the addition, not the manufactured home. And garage with its addition are DETACHED from manufactured home.

2. In answer to "Does the property generally conform to the neighborhood" on the report, the appraiser checked the NO box and stated: "The subject current configuration (Manufactured Home) (unfinished site-built, attached garage) presents a unique property, which would adversely affect the marketability."

Again, this is NOT correct -- the unfinished site-built garage is NOT attached.

Her comments as noted above are strange, because on the very same page of her report she also states: "See attached addendum in reference to site-built addition/garage. Addition is adjacent but not attached to manufactured home." On the addendum, she references again correctly that the garage/addition are adjacent to the manufactured home.

And she also specifically states on the addendum that the property is unique for the market area due to the additional structure adjacent to the manufactured home.

She goes on to comment that "The subject has a detached 3-car garage (unfinished). The comparable properties do not have the same utilization of car storage." However, one of her comps has a 2-car garage with shop. Another comp has a 2-car garage. And the third comp has a 3-car carport with a shop.

Is there a way to challenge the appraisal?

Also, is there a way for me as a buyer to see what notes the underwriter may have made on this property? I'd like to be able to check them for accuracy, in part because the underwriter initially turned the deal down by saying there was a basement, and there is NO basement with this property.

That is going to be your only solution. Yes, it's not easy, but it now can be done. You need to get the case number assigned to another lender (your new lender can walk you thru this) and then your agent needs to request the DEU (Direct Endorsement Underwriter) declare the first appraisal invalid. Document, document, document. Include photos, copies of permits or statements by county assessor, and a very clear explanation why the appraisal is not valid or contains a material deficiency. If possible, I would put together the documentation and then have the loan officers run it by their underwriters and see who "bites" before you go thru the hassle of getting the case number assigned. Instead of your agent, you could probably provide the material to go with the request, but remember your angle is why that work product should be declared invalid. I've only been successful once, but we had an appraiser from outside our area come in and do the appraisal and it was so very obvious he didn't know the area. I was able to get it declared invalid with emails from two other agents from the comps that never should have been used - it was that bad. (The underwriter knew the area well).

Some lenders are not familiar with this process so I have attached the HUD memo that lays it all out, what must be done. The better you build your case, the better the chance the DEU will permit a second appraisal.

Of course you can always compare a frog to a dog, but it doesn't mean they can be compared reasonably.

My point is that those sales are no longer comparable sales but act as a guide to determine a value.

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